In the News: ‘It is not only about economics’: Biden’s friendly visit doesn’t change the protectionist status quo

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Canada itself has engaged in its own form of incentivizing green projects, with the federal and Ontario provincial governments spending a yet-undisclosed amount of money this year to ensure Volkswagen builds its electric vehicle battery plant in St. Thomas, Ontario. Estimates of the total cost range as high as $10 billion CAD, and the project has been received with a mixture of praise and skepticism surrounding the cost and benefits of the plant.

Candice Chow, a professor at McMaster University’s DeGroote School of Business, says the electric vehicle industry would have been an important topic during Biden’s visit.

With the electric vehicle industry growing and requiring new spaces and capabilities, Chow says it’s natural to reshore the industry within Canada.

“Canada has the competitive advantage in mining for cobalt and has lithium deposits, completing a crucial aspect of (the) EV auto supply chain,” says Chow. “Our weather creates opportunities for us to build and develop better battery range. We have a healthy auto sector cluster with part suppliers, especially in Ontario, and multiple multinational enterprise auto brands already have facilities in various parts of the province (and) country.”

Chow says there are many reasons why certain industries are reshoring, including economic and political ones.

Read the full article in The Hub.

Candice Chow

Assistant Professor, Strategic Management

Dr. Candice Chow is the Assistant Professor of Strategic Management at DeGroote School of Business. Prior to becoming a full-time academia, Candice held progressive senior management positions in Asia and in Canada for over twenty-five years with a focus on enterprise strategic management and planning.